"The following is reposted from the publication The Industry Standard and looks into one of the economic reasons behind the war in the Democratic Republic of Congo and the commercial interests of major computer and cell phone related companies in the exploitation of the DRC which comes at a massive cost to civilian life. The original article at http://www.thestandard.com/article/0,1902,26784,00.html has now expired, but is preserved here."
Guns, Money and Cell Phones
By Kristi Essick
The Industry Standard Magazine
Issue Date: Jun 11 2001
The offer turned up a few weeks ago on an Internet bulletin board called the Embassy Network. Among the postings about Dutch work visas and Italian pen pals lurked a surprisingly blunt proposal: "How much do you want to offer per kilogram? Please find me at least 100,000 U.S. dollars and I will deliver immediately."
The substance for sale wasn't cocaine or top-grade opium. It was an ore called Columbite-tantalite - coltan for short - one of the world's most sought-after materials. Refine coltan and you get a highly heat-resistant metal powder called tantalum. It sells for $100 a pound, and it's becoming increasingly vital to modern life. For the high-tech industry, tantalum is magic dust, a key component in everything from mobile phones made by Nokia (NOK) and Ericsson and computer chips from Intel (INTC) to Sony (SNE) stereos and VCRs.
Selling coltan is not illegal. Most of the worldwide tantalum supply - valued at as much as $6 billion a year - comes from legitimate mining operations in Australia, Canada and Brazil. But as demand for tantalum took off with the boom of high-tech products in recent years, a new, more sinister market began flourishing in the Democratic Republic of Congo. There, warring rebel groups - many funded and supplied by neighboring Rwanda and Uganda - are exploiting coltan mining to help finance a bloody civil war now in its third year. "There is a direct link between human rights abuses and the exploitation of resources in areas in the DRC occupied by Rwanda and Uganda," says Suliman Baldo, a senior researcher in the Africa division at Human Rights Watch, a New York-based nongovernmental organization that tracks human-rights abuses worldwide.
The slaughter and misery in the Congo has not abated since the country's president, Laurent Kabila, was assassinated in January. (Kabila's son, Joseph, was quickly appointed the new head of state.) Human Rights Watch researchers, working with monitors in the Congo, estimate that at least 10,000 civilians have been killed and 200,000 people have been displaced in northeastern Congo since June 1999. Rebels have driven farmers off their coltan-rich land and attacked villages in a civil war raging, in part, over control of strategic mining areas. The Ugandan and Rwandan rebels "are just helping themselves," Baldo says. The mining by the rebels is also causing environmental destruction. In particular, endangered gorilla populations are being massacred or driven out of their natural habitat as the miners illegally plunder the ore-rich lands of the Congo's protected national parks.
The link between the bloodshed and coltan is causing alarm among high-tech manufacturers. Slowly they are beginning to grapple with the possibility that their products may contain the tainted fruits of civil war. A similar controversy, after all, wracked the diamond industry in the late 1990s, when global demand for the gems helped finance civil wars in Sierra Leone, Angola and Liberia. Since then, the international community has clamped down on the diamond trade, imposing tougher import and export regulations.
But with tantalum, such regulations may be difficult to enforce. The market for the metal is based on secretive and convoluted trade links subject to few international regulations, and the ore is not sold on regulated metals exchanges.
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See also: Congo's Tin Soldiers - Democratic Republic of Congo
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